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Here's What Key Metrics Tell Us About American Eagle (AEO) Q1 Earnings

Zacks Equity Research
·2 min read

American Eagle Outfitters (AEO) reported $1.08 billion in revenue for the quarter ended April 2023, representing a year-over-year increase of 2.5%. EPS of $0.17 for the same period compares to $0.16 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $1.06 billion, representing a surprise of +1.57%. The company has not delivered EPS surprise, with the consensus EPS estimate being $0.17.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how American Eagle performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Number of stores - Total (EOP): 1180 versus 1173.75 estimated by four analysts on average.

  • Comparable store sales - Aerie: 2% compared to the 0.18% average estimate based on three analysts.

  • Gross square footage - Total: 7.27 Msq ft versus 7.3 Msq ft estimated by three analysts on average.

  • Number of stores - Aerie stand-alone: 297 versus the three-analyst average estimate of 300.67.

  • Number of stores - AE Brand: 867 versus 859.33 estimated by three analysts on average.

  • Comparable store sales- American Eagle Outfitters: -4% versus -1.94% estimated by three analysts on average.

  • Total net revenue- American Eagle: $671.09 million versus $668.52 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -2.2% change.

  • Total net revenue- Aerie: $359.08 million versus $336.69 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +11.5% change.

View all Key Company Metrics for American Eagle here>>>

Shares of American Eagle have returned -10.7% over the past month versus the Zacks S&P 500 composite's +0.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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Zacks Investment Research